To: Patrick Slevin who wrote (8376 ) 11/5/1998 From: Kevin McKenzie Respond to of 119973
Sorry to interrupt. Does anyone have any thoughts as to how the market will treat DCLK and TFSM given MicroSoft's purchase of LinkExchange? Are DCLK and TFSM good short candidates? Is this old news?Microsoft to Buy LinkExchangeFor About $250 Million in Stock By NICK WINGFIELD THE WALL STREET JOURNAL INTERACTIVE EDITION In a further refinement of its online media efforts, Microsoft Corp. plans toacquire LinkExchange Inc., a closely held Internet-advertising firm, in astock deal valued at about $250 million, according to people familiar withthe matter. LinkExchange, San Francisco, has become one of the best-knownInternet-advertising networks, a class of new-media firms that sell bannerpromotions on a fleet of far-flung Web sites in order to reach the largestpossible audience. LinkExchange alone places ad banners on about400,000 Web sites, though many of those sites are obscure personal homepages, not large commercial sites. While that makes for a fragmented audience, it's also a large one: ForSeptember, measurement firm RelevantKnowledge Inc. reported thatLinkExchange's sites reached more than 22 million unique Web surfers, or42% of the Web audience. That's a greater reach than competitorsDoubleClick Inc., 24/7 Media Inc. and others enjoy. LinkExchange will be integrated into theRedmond, Wash., software giant's MicrosoftNetwork, or MSN, group. The move toacquire LinkExchange could give Microsoft amuch stronger position in online media, whereit has been working to overhaul earlier stabs atWeb publishing. The company has jettisonedplans to create entertainment-oriented sites infavor of Web services like its Expedia onlinetravel agency, CarPoint automobile catalog and HotMail, a free e-mailoffering, and has opted to group them under the MSN brand name. That strategy is increasingly pitting Microsoft against more establishedWeb portals such as Yahoo! Inc. and Excite Inc. Earlier this year, Exciteacquired another Internet-advertising network, MatchLogic Inc., in a stockdeal valued at $89 million. LinkExchange, founded in 1996, has taken a unique approach that hasallowed it to grow its network of sites very quickly. The company allowsmember Web sites to advertise for free on other sites throughout theLinkExchange network -- provided they agree to return the favor.LinkExchange then makes money by selling a chunk of the ad space on itsmember sites to paying sponsors, including Procter & Gamble Co., AMRCorp.'s American Airlines and Microsoft itself. According to one person familiar with the deal, LinkExchange could alsogive Microsoft advertising access to a new crop of small andmedium-sized Web pages. Microsoft officials declined to comment, while LinkExchange officialsweren't available Wednesday afternoon.